Jason Rogers
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Who can resist hyped headlines. Was reading CNBC yesterday and the article about Marc Faber calling for a "market meltdown" with a 20% decline in the stock market caught my attention. But I started thinking about it some more today and decided to measure exactly where a 20% decline in the Dow would leave us. I measured a 20% decline from the October 5 peak of 13,665, and the decline would end up around 10,932 level. Here's a look at the chart:
Technically speaking, the chart kind of makes sense when you take a look at the big picture. The 20% decline is right at the 2000 tech bubble top (resistance becomes support) and the congestion zone from August-October 2011.
We're already down 7.9% from he peak, so what's another 12%. Should also note that the chart is the US30 (FXCM CFD) which tracks the DJIA.
Anyone think we'll see this type of decline?
Technically speaking, the chart kind of makes sense when you take a look at the big picture. The 20% decline is right at the 2000 tech bubble top (resistance becomes support) and the congestion zone from August-October 2011.
We're already down 7.9% from he peak, so what's another 12%. Should also note that the chart is the US30 (FXCM CFD) which tracks the DJIA.
Anyone think we'll see this type of decline?